• Canada’s fuel charge filing is in addition to the IFTA filings.
• The Canadian government introduced a fuel charge as part of its Greenhouse Gas Pollution Pricing Act, which is administered by the CRA.
• The jurisdictions in which the fuel charge must be paid include Alberta, Saskatchewan, Manitoba, Ontario, Yukon, and Nunavut.

Canada fuel charge program

The Canadian government introduced a fuel charge in early 2019 as part of its Greenhouse Gas Pollution Pricing Act, which is administered by the Canada Revenue Agency (CRA).

Motor carriers providing commercial transportation or travel through the provinces of Manitoba, Ontario, Saskatchewan, or the territories of Nunavut and Yukon are required to register with the CRA and are subject to quarterly fuel charge filings. Effective January 1, 2020, the fuel charge is applicable in Alberta.

The tax applies to Canada-based road carriers as well as U.S.-based carriers that operate into the “listed provinces.” A Canada-based carrier that operates solely in a listed province is not subject to registration or the quarterly tax filings.

Canada’s fuel charge filing is in addition to the International Fuel Tax Agreement (IFTA) filings.

Key definitions

• Listed provinces: Listed provinces are the jurisdictions in which the fuel charge must be paid and includes Alberta, Saskatchewan, Manitoba, Ontario, Yukon, and Nunavut.
• Summary of requirements: Canada’s federal fuel charge program applies to a variety of entities, including road carriers that use qualifying motive fuel when operating specified commercial vehicles in the listed provinces. Qualifying motive fuel includes gasoline, light fuel oil, marketable natural gas, and propane.
  • A specified commercial vehicle is one that essentially meets the definition of a qualified vehicle under the IFTA.
• Road carrier registration: Before beginning operations in any of the listed provinces, a road carrier must register with CRA. Road carriers must use L400 and L400-2 application forms.
  • If the road carrier is not based in Canada, the carrier will need a CRA business number (BN) to put on those forms. A carrier should call (866) 453-0452 or (519) 252-4705 for assistance and specifically state that a BN is needed for the fuel charge program.
  • Registration forms are available at tinyurl.com/fuelforms.
• Filing responsibilities: The fuel charge must be filed quarterly with CRA.
  • Filing forms are available at tinyurl.com/fuelforms.